Financial Incentive Programs for Average‐Size Construction Firm

Abstract

Properly applied financial incentives are a powerful motivational tool that can inspire employees to improve their performance, thus increasing profits and strengthening the company. In light of such potential benefits it is unfortunate that the overwhelming majority of construction contractors do not offer financial incentives to their field workers. Research is performed to study many issues relating to financial incentive programs for small‐to‐medium‐size construction companies located in the southeastern United States. The results of the study indicate that the contractors surveyed generally knew about financial incentive programs, used different types of them to increase productivity, rarely studied financial incentive programs, needed firm proof that programs are effective and efficient, and desired information on how to develop one for their own company. If a financial incentive program is to be developed it must have commitment from top management, be based on realistic productivity standards, be efficiently managed, and have worker support.